Wealthy told not to be shy about their philanthropy

By Adele Horin

22 March 2011 — 12:00am

AUSTRALIA needs its rich donors to be upfront about their philanthropy in order to inspire others to give substantial sums, a new study says. But a culture of ''cutting down tall poppies'' forces many philanthropists to head underground.

The study, by the Australian Centre for Philanthropy and Nonprofit Studies at Queensland University of Technology, says Australia does not celebrate wealth or giving, leading many donors to stay in the closet.

US software billionaire Bill Gates addresses the crowd during the Live8 concert in Hyde Park, London.Credit:AFP

''Unquestionably, there is a need for people to talk more about their giving to inspire others,'' said Wendy Scaife, the study's lead author.

The study is based on 50 interviews with major fund-raisers and with benefactors who have contributed a donation of at least $10,000.

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Many said Australia had a significant culture of philanthropy but it was not very visible or acknowledged, and much more could be done to encourage major gifts.

The study, A Transformational Role: Donor and Charity Perspectives on Major Giving in Australia, also said the secrecy around philanthropy provided a safe hiding place for rich individuals who contributed little.

Dr Scaife, a senior research fellow, said major donors were worried about ''big-noting'' themselves. They were also worried about being harassed and not being able to cope with demands. ''The culture of giving remains less culture, more sub-culture,'' she said.

Media publicity of significant donations was not necessarily the answer, she said, as some big donors wanted privacy. But the study found peer influence could be a trigger for major philanthropy so it was important for people to talk to their family, friends and colleagues about their giving.

Bill Ferris, a Sydney businessman, fund-raiser and donor, said the rate of giving among many of Australia's rich was low.

''There are at least 25 billionaires in Australia; the rate of wealth creation through the mining sector has been extraordinary,'' he said. ''But people giving as a percentage of their income or assets continues to be disappointingly low.''

In his capacity as fund-raiser for a new cancer centre at the Garvan Institute of Medical Research, Mr Ferris said it was important that he told peers that he would personally contribute more than $2 million.

It helped persuade 10 others to contribute seven-figure sums, and John Kinghorn, founder of RAMS Home Loans, contributed $25 million.

Janet Holmes a Court, a businesswoman and philanthropist, said going public about a donation prompted a flood of other requests. ''Some of the things I support, such as classical music, I'm happy for people to know,'' she said. For example, she commissioned a new symphony from the Australian composer Carl Vine, paying $30,000 for the project and associated costs.

Australia's most generous philanthropist is an American, Chuck Feeney, who lives here for two months a year. He has given away $500 million since 1998, mostly to help fund 20 new research institutes. Once an ''in the closet'' giver, he now meets with Australia's mega-wealthy to encourage greater generosity.

The study found some wealthy Australians gave relatively little because of a ''genuine'' feeling of financial insecurity, a privileged life far removed from need, or because they believed the government was responsible. As well, some had a ''single minded focus on the amassing of money''.

Dr Scaife said there was a lot of need in the community, and many Australians made a huge difference with their giving.